Enbridge Is Said to Seek Partial Sale of German Wind Farm Stake
(Bloomberg) -- Pipeline company Enbridge Inc. is seeking to cut its stake in a German offshore wind project, according to people familiar with the matter.
The Canadian energy company is selling half its 50 percent share in the Hohe See offshore wind farm being developed with utility Energie Baden-Wuerttemberg AG, said the people, who asked not to be identified because they aren’t authorized to speak publicly. Enbridge had said last year when it acquired the stake it would invest C$1.7 billion ($1.3 billion).
Brookfield Asset Management Inc. in Toronto, pension fund Caisse de Depot et Placement du Quebec and Macquarie Group Ltd.’s Green Investment Group Ltd. are lining up bids for the energy company’s stake, the people said.
Representatives for Enbridge, EnBW, Brookfield, CDPQ and Macquarie declined to comment.
The Hohe See project is eligible to receive long-term fixed prices for the power it generates under the German government’s incentive program, which makes it more attractive than later projects that won’t get subsidies. The 497-megawatt wind farm, enough to power 566,000 homes, is expected to start producing power next year.
Enbridge’s disposal comes amid an asset-sale program to reduce its $14.5 billion debt load from last year’s acquisition of Spectra Energy Corp.
The energy company is planning to streamline its business into three segments: oil pipelines, gas pipelines and gas utilities. It has said it plans to divest about C$10 billion from non-core assets as a result. The company is currently working with advisers to sell its gathering and processing assets in Canada that could raise more than C$2 billion, people familiar with the matter said earlier this week.
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